Albemarle depends entirely on lithium prices, which are falling and would drag the stock down. With lithium demand growth expected between 15% and 40%, 15% implies another 70% fall while 40% implies the stock doubles; a supply surplus and new battery technology risk make it essentially a general bet on the lithium sector.
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Albemarle has looked at lithium several times over the past decade. Everything depends on lithium prices. Lithium prices are falling , and you can see the drop here, which means everything will go down with Albemel.
The matter concerning lithium is as follows. this. Look at this. Demand growth for lithium is expected to range between 15% and 40%. If the percentage is 15%, the stock will fall by another 70%.
If the ratio is 40%, the stock will double. This is something that needs to be understood when it comes to lithium. The stock price chart perfectly illustrates the ups, downs, and fluctuations .
Then I looked and found that there was a lot of lithium. They had a lot of cash four or five years ago. All those mining projects are still in operation, and if there is a surplus in supply, it will look bad.
Perhaps sometime this winter their focus will be on whether lithium prices fall further, but it's just a general bet on the sector. Not to mention the technical risks of new battery technologies, and things like that . This is another company that deserves a review.